‘Sell Everything To Them And Let Them Deal With It’
"Right now there are more cross currents than I can ever remember", one CIO told Bloomberg on Tuesday.
He was referring to how difficult it is for investors to decide where to focus their attention on any given day. Tuesday was clearly about stimulus, and specifically the prospect that the Trump administration is prepared to advance a proposal for a $1 trillion infrastructure package.
That buoyed energy, materials and an infrastructure ETF, which rose a third day, alongside the broad US market
I feel silly asking this as I mean it to be rhetorical; it doesn’t have an answer. But, perhaps, I am more ignorant than I imagined and someone knows what is the rubric by which the Fed uses to monitor for “possible” bubbles in financial assets?
This has been debated at the Fed going back to 1998 paper, which name I forget, and then subsequently litigated by Bernanke and Gertler (I believe) and also by Adam Posen among many others. Indeed, while in London, I asked this direct question to Bullard in a Q&A following a talk. The conclusion is 1, you are not ever quite sure its a bubble or something rational and 2. pricking it causes more damage than good. Thus the idea is to let the bubbles form, then pop, and then pick up the pieces later.
H, completely off topic, but would love to hear your thoughts on this new IPO paradigm using SPACs.
The fact that the Chinese fired on the Indian border troops is good. it reinforces in everyone’s mind that they are not to be trusted period. Not as peaceful neighbors. Not as a good place to invest your money. In the long run hey are a threat to all of us. Be careful in dealing with a country that vies to be dominant by whatever means possible.
This is not a good comment. For one thing, it is never “good” when anyone fires on anyone. 20 people are dead. There’s nothing “good” about that. Also, the “they are a threat to all of us” language is disconcerting and not generally welcome. If you want to talk about the specifics of the border clashes from a geopolitical perspective, great, but let’s not perpetuate the “us versus them” narrative in these pages. This isn’t the platform for that.
Thanks Walt
Thank you much for dousing the flames of fear. Impossible to think with a clear mind when fear takes root. Our current economic climate has sufficient fodder for the flames of fear without building it from nothing. Probably the biggest intellectual effort I have is to keep my fear circuitry from taking over.
To think that proactive veiled racism has made it to this pages is definitely disconcerting
Thanks Will. And I sure like you movies!
Reportedly, nobody “fired on” anyone. Instead, they beat each other with clubs and rocks. Seriously.